1. Field of Invention
The present invention relates to a method and apparatus for distributing coupons or other redemption certificates for retail sales of merchandise, such as groceries and dry goods and to a method and apparatus for monitoring and controlling the number of such coupons issued and/or redeemed.
2. Description of the Prior Art
In the past, it was a common marketing scheme for manufacturers to distribute large numbers of coupons or similar redemption certificates in local newspapers or other productions distributed to the general public. These coupons typically included an advertisement for the particular product and provided a discount off the regular price if presented at a participating grocery store at the time of purchase. Coupons redeemed at the various retail outlets were sent to a national clearing house which calculated the amount due to the retailers and billed the manufacturers for the portion due on account of sales of their respective products. While the distribution of coupons was generally regarded as a good advertising and marketing technique, the prior art methods of coupon distribution and redemption had serious drawbacks for the manufacturers. For example, the only way redemption has been at all measured is by prior studies, which shows an average redemption to be about 3%. Actual redemption could not be controlled. It was possible that a particular manufacturer's coupon could have an unexpectedly high redemption and cost much more than anticipated.
Furthermore, the prior art method of distribution lent itself to fraudulent practices both by the individual redeeming coupons at a retail store and by the retail outlet itself. For example, an individual purchasing a large amount of groceries during peak business hours at a particular store could have easily been credited for coupons or products they had not actually purchased because of the inconvenience to the store employee of checking each item versus the coupons. The retail stores would, in such circumstances, routinely present all coupons, including those erroneously redeemed, to the national clearing house for payment. It was also possible for store employees to obtain cash for coupons without purchasing the products. In all of these circumstances, the manufacturer was held responsible for the value of the coupon without having made a sale of the product.